Chongqing, China—ASX-listed mineral exploration company Kazakhstan Potash Corp. Ltd. (KPC) and China’s Chongqing Material of Agricultural Production (Group) Co. Ltd. (CMAG) have signed a joint venture agreement to develop a fertilizer production and distribution hub in southwest China’s Chongqing municipality. According to China Daily, the parties are targeting production of around 3 million mt/y of compound fertilizer. Under the terms of the agreement, KPC will assist in sourcing financing and over time provide potash from its projects in Kazakhstan, according to a company statement. CMAG, in turn, will provide the land and infrastructure for the hub creation and operation, as well as its existing terminal and fertilizer warehouse on the Yangtze River. The terminal includes an established rail link to China’s rail network and the Chongqing-Xinjiang-Europe Railway system, which runs through Kazakhstan. “The newly formed joint venture will begin its operation through fertilizer trading and logistics with a view to becoming one of China’s leading fertilizer logistics and trading companies operating out of southwestern China,” KPC said. The fertilizer products will be sold in southwest China and also exported to Japan and Southeast Asian countries, according to Wan Zhongcheng, CMAG chairman. The jv is aiming to realize an annual revenue of more than 20 billion yuan (around $3 billion) in three to five years, China Daily reported. KPC owns the rights to three potash deposits that it is developing via a framework cooperation agreement the company signed in December 2014 with China’s CITIC Construction Co. Ltd., the Industrial & Commercial Bank of China Ltd., and Kazahstan’s Ministry of Investment and Development. KPC aims to build a potash production base in Kazakhstan within 10 years.